HSBC plans eight-year fixed-to-floating notes on Consumer Price Index

By Toni Weeks

San Diego, May 23 - HSBC USA Inc. plans to price fixed-to-floating-rate notes due June 10, 2019 linked to the Consumer Price Index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 4% for the first year. After that, the rate will be equal to the year-over-year change in the Consumer Price Index plus 125 basis points, subject to a maximum interest rate of 7%.

Interest is payable monthly and cannot be less than zero.

The payout at maturity will be par plus the final interest payment.

The notes (Cusip: 4042K1HX4) are expected to price June 7 and settle June 10.

HSBC Securities (USA) Inc. will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.